BJ’s Wholesale Club Announces Expansion into Texas as Part of Plan to Add 25-30 New Clubs Over Next Two Fiscal Years

Rhea-AI Summary

BJ's Wholesale Club (NYSE: BJ) has announced an ambitious expansion plan to open 25-30 new clubs over the next two fiscal years, including its first entry into Texas with multiple locations in the Dallas-Fort Worth area planned for early 2026.

The membership-based retailer, known for offering up to 25% savings off grocery store prices, will also open several new locations in 2025, including stores in Delray Beach (FL), Warner Robins (GA), Sevierville (TN), and Casselberry (FL). The Delray Beach location will be the company's second concept club called 'BJ's market', offering an expedited grocery shopping experience.

Already announced openings for early fiscal 2025 include Brooksville (FL), Myrtle Beach (SC), Southern Pines (NC), Whippany (NJ), and Staten Island (NY). Each new club is expected to create 100-150 jobs in its community.

Positive

• Major expansion with 25-30 new stores over next 2 fiscal years
• Entry into high-growth Texas market
• 100-150 new jobs per location
• Geographic diversification into new markets
• Innovation through BJ's market concept expansion

Negative

• Significant capital expenditure required for expansion
• Execution risks in new market entry
• Increased operational costs from rapid expansion

Insights

Retail Expansion Expert

BJ's Wholesale Club's announcement to open 25-30 new clubs over the next two fiscal years signals a significant acceleration in their growth strategy and territorial expansion. The move into Texas – specifically the Dallas-Fort Worth market – represents a bold westward push beyond their traditional East Coast footprint.

The Texas expansion is strategically sound for several reasons. The Dallas-Fort Worth metroplex offers demographic advantages with its robust population growth, strong household formation rates, and income levels that align well with BJ's value-oriented membership model. By citing "economic expansion and growing population" as key factors, management demonstrates they're targeting markets with favorable long-term trajectories.

What's particularly noteworthy is BJ's methodical approach. The Texas locations won't open until early 2026, suggesting careful market planning rather than rushed execution. This measured timeline allows for proper site selection, supply chain preparation, and marketing groundwork in a region where BJ's lacks brand recognition against entrenched competitors.

The continued development of their smaller-format "BJ's market" concept in Delray Beach represents an important strategic complement to their primary expansion. This format innovation gives the company flexibility to enter markets where full-size warehouse clubs might be impractical, potentially accelerating their long-term unit growth beyond current projections.

With each new club generating 100-150 jobs, this expansion represents approximately 2,500-4,500 new positions company-wide, significantly increasing their operational footprint and market presence. The expansion pace suggests management confidence in their ability to deliver their value proposition of 25% savings versus traditional grocers even in new competitive territories.

Financial Analyst

BJ's expansion announcement represents a substantial capital commitment that will shape the company's financial trajectory over the coming years. While specific investment figures weren't disclosed, warehouse club developments typically require $25-40 million per location for construction, land, and initial inventory. The planned 25-30 clubs could therefore represent a $625 million to $1.2 billion capital deployment over two fiscal years.

This aggressive growth initiative will likely create a multi-phase financial impact. Near-term, investors should expect increased capital expenditures and potentially higher SG&A expenses as the company builds infrastructure to support geographic expansion. Pre-opening expenses will pressure margins initially as new clubs ramp up membership and establish operating efficiency.

The expansion into Texas marks entry into the second-most populous state, offering substantial revenue growth potential but requiring significant marketing investment to establish brand awareness in a market dominated by competitors. The 2026 timeline for Texas openings provides a measured approach that should allow the company to maintain financial discipline while executing this ambitious growth plan.

Warehouse clubs generally reach profitability faster than traditional retail formats due to membership fee income providing an immediate revenue stream before the first product is sold. However, the Texas expansion represents uncharted territory for BJ's operating model and supply chain network.

The continued testing of the smaller BJ's market format in Delray Beach provides optionality for future growth. If successful, this concept could allow entry into higher-density areas with reduced capital requirements per location, potentially improving return on invested capital for future expansion phases.

While the expansion plan demonstrates management confidence, investors should monitor membership acquisition costs and renewal rates in new markets as key indicators of the expansion's long-term success.

Multiple Texas clubs and gas stations set to open in Dallas-Fort Worth area in early 2026

MARLBOROUGH, Mass.--(BUSINESS WIRE)-- BJ’s Wholesale Club (NYSE: BJ) today announced plans to open 25-30 clubs over the next two fiscal years, including several clubs set for the Dallas-Fort Worth area starting in early 2026.

BJ’s Wholesale Club is a membership-based retailer that has been delivering unbeatable value and convenience to smart-saving families for over 40 years. BJ’s offers a large assortment of fresh produce, bakery goods, meat and dairy items as well as household essentials, consumer electronics, toys and apparel – a true one-stop shop. Many members do their weekly grocery shopping at BJ’s, saving up to 25% off grocery store prices every day and save even more by filling up at BJ’s Gas.

“We are eager to continue our expansion by bringing unbeatable value, convenience and assortment to the Dallas-Fort Worth community,” said Bob Eddy, Chairman and CEO, BJ’s Wholesale Club. “Economic expansion and a growing population make Texas a great fit for us. We believe our unique club model, which delivers savings of up to 25% off grocery store prices every day, will resonate with the families in this area. We look forward to living our purpose of ‘taking care of the families who depend on us’ in Texas.”

BJ’s has a longstanding commitment to the communities where its members and team members live and work. Established in 2004, the BJ’s Charitable Foundation provides essential needs to families through local and national non-profit partnerships. The Foundation focuses its giving efforts on three main pillars: hunger relief, education and health and wellness.

BJ’s is proud to partner with Feeding America and its network of food banks to help end hunger in the communities where it operates. For over 15 years, the partnership has provided more than 125 million meals for those in need. Once open, each new club in Texas will support a local food bank with weekly donations of produce, meat and dairy products.

BJ’s also announced several new locations set to open in 2025, including:

• Delray Beach, Florida
• Warner Robins, Georgia
• Sevierville, Tennessee
• Casselberry, Florida

The location in Delray Beach will be a BJ’s market – the second of the company's concept clubs. BJ’s market provides a convenient, expedited grocery shopping experience that will feature top-selling fresh foods, produce, sundries and seasonal products for members, with all the value and convenience that BJ’s members have come to know and love from the club.

“Our newest BJ’s market will deliver an innovative approach to grocery shopping to the Delray Beach community,” said Bill Werner, Executive Vice President of Strategy and Development, BJ’s Wholesale Club. “Members will be able to get unbeatable value on fresh food and weekly grocery needs in a quick and efficient shopping experience.”

The company’s plans for 25-30 clubs include previously announced club openings in early fiscal 2025:

• Brooksville, Florida (opened February)
• Myrtle Beach, South Carolina (opened February)
• Southern Pines, North Carolina (opening March 7)
• Whippany, New Jersey
• Staten Island, New York

BJ’s offers members several time-saving options whether online or in-club. Curbside pick-up, in-club pickup, same-day delivery and standard delivery are available on BJs.com, while members shopping in-club can use ExpressPay through the BJ’s mobile app to scan products as they shop and skip the checkout line.

Each new club location is expected to create between 100-150 jobs in its community. Team member development and training are a central focus at BJ’s Wholesale Club. Those interested in becoming a BJ’s team member can visit BJs.com/careers for information on available opportunities.

About BJ's Wholesale Club Holdings, Inc.
BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) is a leading operator of membership warehouse clubs focused on delivering significant value to its members and serving a shared purpose: “We take care of the families who depend on us.” The company provides a wide assortment of fresh foods, produce, a full-service deli, fresh bakery, household essentials, various exclusive offerings, gas and more to deliver unbeatable value to smart-saving families. Headquartered in Marlborough, Massachusetts, the company pioneered the warehouse club model in New England in 1984 and currently operates 252 clubs and 188 BJ's Gas^® locations in 21 states. For more information, please visit us at www.BJs.com or on Facebook, or Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250306044458/en/

Media:

Kirk Saville

Head of Corporate Communications

BJ’s Wholesale Club

ksaville@bjs.com

774-512-5597



Briana Keene

Sr. Manager, External Communications

BJ’s Wholesale Club

bkeene@bjs.com

774-512-6802

Source: BJ’s Wholesale Club

FAQ

How many new stores will BJ's Wholesale Club open in the next two fiscal years?

BJ's plans to open 25-30 new clubs over the next two fiscal years.

When will BJ's Wholesale Club open its first Texas locations?

BJ's will open its first Texas locations in the Dallas-Fort Worth area in early 2026.

What savings do BJ's Wholesale Club members typically receive on groceries?

Members can save up to 25% off grocery store prices every day.

How many jobs will each new BJ's Wholesale Club location create?

Each new club location is expected to create between 100-150 jobs in its community.

Which new BJ's locations are confirmed to open in 2025?

Confirmed 2025 openings include Delray Beach (FL), Warner Robins (GA), Sevierville (TN), and Casselberry (FL).